The retail real estate brokerage's 20th annual study of the central New Jersey market found 2.54 million square feet of vacancies in the 28.34 million square feet of space reviewed along State Highways 1, 9, 18 and 35 in Mercer, Middlesex and Monmouth counties, and a small section of Ocean County. Availabilities were seen in 121 of the 516 properties reviewed. By contrast, the firm's 2007 study reported 1.33 million square feet of vacancies in 28.11 million square feet.

This latest report follows last week's issuance of the firm's annual survey of the northern New Jersey market, where the vacancy rate grew to 6.6% from 3.6% in 2007, with 1.84 million square feet available in the 27.96 million square feet reviewed along six corridors. On a consolidated basis, the two regions saw their vacancy rate escalate to 7.8% in 2008 from 4.2% a year earlier, with 4.38 million square feet available in the 56.3 million square feet studied.

"Looking back over the last 17 years, the consolidated rate was exceeded only by the 8.2% set in 1992," says Richard J. Brunelli, president of the firm. "At that time, it took six years for the rate to come down to a healthy level of 5.1% in 1998," he says, adding that this marked the start of an extended strong period during which rates never exceeded 4.4% and dropped as low as 3.2% in 2005, before moving back to last year's 7.8%.